Brazil's Realm of Video Games, Daily Fantasy Sports, and eSports May Secure 'Sector' Recognition
Last updated on: November 16, 2022, 10:00h.
Erik Gibbs
Erik Gibbs
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As a gaming enthusiast in Brazil, you might be on the cusp of witnessing something exceptional. Video games, daily fantasy sports (DFS), and eSports are just a few legislative signatures away from receiving official recognition as an industry. This recognition could bring new employment opportunities and tax benefits to players and businesses alike.
Brazil, home to one of the largest markets for gaming and software development, is already teeming with interest in these hobbies. However, companies are critical of the government's approach to taxation.
Asia Pacific Gaming,
Lighting the Way for Gaming and Innovation
With the impending bill approval, electronic games development will be classified under research and technological innovation, making companies eligible for tax benefits. Expert estimates suggest this approach could generate 5,000 new jobs—both direct and indirect—in the DFS sector alone within the first half of 2023. The sector's growth could potentially spark employment opportunities in other related fields.
Gaming Business,
Revenues from gambling could hit R$120m (US$22.5 million) by 2026, according to predictions. This increase could position Brazil as the third-largest market in the segment, trailing only the U.S. and India.
politics
Global Gaming.
The bill originated in the Senate, drawing widespread support. With Brazil working through the political transition to the Lula government, addressing gambling issues may take a back seat in favor of political positioning.
The current government's focus on stabilizing after the bitter defeat has been notable. Jair Bolsonaro—former president—has remained quiet on social media and kept a low profile since the election.
Brazil, where they are already extremely popular. A bill currently in the works would legitimize them as part of an official “industry,” leading to new jobs and tax benefits for companies in the space.
Fantasy-sports
Some drafting of the bill began to address console and PC games. However, the scope expanded to include eSports and DFS throughout the process. The rising popularity of eSports in Brazil (up 16.9% from last year, according to the Game Brasil survey) continues to bolster interest in these gaming sectors.
Game Brasil survey, an annual study on the consumption of online gaming in the country, showed that 81.2% of gamers surveyed had heard of eSports. This translates into a rise of 16.9% compared to last year.
Enrichment-data
Brazil recently introduced regulated online gambling, including sports betting and online gaming, with implementation scheduled for January 1, 2025[1][3][5]. The government has also is currently working on legalizing land-based casinos, which has passed the Chamber of Deputies and awaits final approval in the Senate[1].
Jair Bolsonaro to that of Luiz Inácio Lula da Silva following the recent runoff election. It’s a slow process, prolonged even more by the protests that followed the vote.
Regulatory bodies, such as the Secretariat of Prizes and Bets (SPA), have issued permanent licenses for betting companies, emphasizing responsible gaming practices and financial security[1][5].
Recognizing video games, DFS, and eSports as an official industry could have substantial effects on job creation and tax revenues. Estimated job creation could reach 5,000, potentially boosting employment opportunities with international companies.
Regulation and taxation could also allow the government to collect taxes on these activities, generating substantial revenue.
The recognition of video games, DFS, and eSports as an official industry in Brazil could bring substantial job opportunities, with expert estimates suggesting 5,000 new jobs in the DFS sector alone by the first half of 2023. This classification of electronic games development under research and technological innovation will make companies eligible for tax benefits.
The rising popularity of eSports in Brazil, as shown in the Game Brasil survey, with 81.2% of gamers having heard of eSports, continues to boost interest in these gaming sectors.
With the pending bill approval, companies in the gaming and software development sector in Brazil stand to benefit from tax benefits, potentially generating significant revenue for the government.